UCO Bank to invest Rs 60 bn in 3 yrs
UCO Bank to invest Rs 60 bn in 3 yrs >Kolkata-based UCO Bank (Q, N,C,F)* is planning to infuse around Rs 60 billion of fresh capital in the next three and a half years for expansion of its business, reports Economic Times. UCO is targeting a 20% annual growth (on average) in its loan portfolio over the next few years. Of the total Rs 60 billion, the bank proposed to raise nearly Rs 38 billion from capital markets and the remaining part would be raised by ploughing back profits into capital reserves and other internal accruals. Of the Rs 38 billion, the bank will raise around Rs 3 billion by way of a follow-on public offer (FPO) and Rs 35 billion by selling tier-2 bonds as well as hybrid capital such as tier-1 perpetual bonds to institutional investors. The bank would increase its tier-1 plus tier-2 capital from the current level of Rs 50 billion to Rs 110 billion by March 2011.
